Helping Young Adults LearnThe Basics of Handling their Money and

Finances

What is the FDIC? Insures deposits to at least $250,000

Promotes Safety and Soundness of insured financial institutions

• Regulates financial institutions for compliance with consumer laws and regulations

• Facilitates community development efforts

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Need• 76% of 1,000 parents surveyed by VISA reported that

their high school student had no budget, and over half agreed that their child thinks “money grows on trees.”

• Charles Schwab Teens & Money 2007 survey:– 1 in 4 teens knew how credit card interest & fees work– 1 in 4 knew to avoid using a check-cashing service– 1 in 3 knew how to balance a checkbook or check the

accuracy of a bank statement

• The fastest growing group of bankruptcy filers is estimated to be those age 18-24.

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Overview

FDIC’s financial education curriculum Based on the award-winning Money

Smart curriculum, but targeted towards teens and young adults

Target audience: those ages 12-20– Grades 7-12– First and second years of college

The Modules

1. Bank On It 2. Check It Out 3. Money Matters 4. Pay Yourself First5. Borrowing Basics 6. Charge It Right 7. Paying for College and Cars 8. A Roof Over Your Head

Objectives• Students can:

– Confidently use banks & credit unions– Create and implement a budget– Distinguish between “wants” and “needs”– Use credit and borrow money responsibly– Know their financial rights and safeguard money– Know options for buying a car or paying for college– Determine their readiness to invest and prepare for

their future property purchases

The curriculum includes:

• Guide on “how-to” use the curriculum

• For every module:

–Comprehensive instructor’s guide

–Take-home booklet for students

–Overhead slides (PPT and PDF)

–Computer-based scenarios

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Alignment

Mapped to educational standards for:All 50 states, DC, Guam, & the VIJump$tart national financial literacy

standardsNCEE national economics

standards

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Unique features

FreeUnbiased and is unaffiliated with any

commercial interestOffers a completely customizable

curriculum consisting of stand-alone modules

Built on the award-winning Money Smart adult financial education curriculum

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Distribution

Distributed on CD-ROM Instructor-led curriculum

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Potential Uses

Required courseOptional materialSupplemental materialGuest teachers After-school program

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Design of the curriculum

Content is presented in a modular format.

Designed to appeal to all learning styles

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Design (continued)

Primary mode of instruction is based on an experimental learning principle.

Overall goal was to design and develop content suitable to the widest range of educators and instructors who may access it.

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Design (continued)

MSYA gives instructors a vehicle to engage students in content and use new knowledge at application, analysis, synthesis and evaluation levels, effectively making the content come to life for students.

Money Smart Survey Results

Findings include:• Immediately after the course:

–69 percent of respondents reported an increase in their level of savings,

–53 percent reported their debt decreased, and

–58 percent stated they were more likely to comparison shop.

Money Smart Survey Results (cont.)

• 6-12 months following the course: – 13 percent of participants who already had a

checking account opened a different type of account at the same bank & 22 percent opened a checking account elsewhere, showing the ability to comparison shop

– 43 percent of those without a checking account opened a checking account

– 37 percent of those without a savings account opened a savings account

FDIC’s Role

• Distribute the curriculum to potential instructors

• Provide technical assistance, possibly including linking schools or sites interested in teaching Money Smart with guest instructors from banks

• Teach Train-the-Trainer classes

• Publications

Money Smart News

• View online or subscribe to get via email– www.fdic.gov/moneysmart

• Released quarterly

• Provides:

– Success stories

– Updates on the Money Smart program

• Submissions are welcome

Questions?

Kevin E. Williams(225) 201-1715 ext. 6725

kwilliams@fdic.gov

Thank you